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QuestionsCategory: Entry StrategiesCurrent Valuation of Alphabet
Sanjay Mishra asked 2 years ago

HI,
Could you please provide your input of Current Valuation of Alphabet? I tried to fill the checklist but got lost, specially when I looked at matrices like p/e , p/eg… and allocating them  to grossly undervalued , slightly undervalued section. 
so frankly I am not able to use checklist and end up googling further and came across post: https://www.nasdaq.com/symbol/googl/analyst-research which recommends as right time to buy. please provide your input on valuation. thanks

3 Answers
Victor Chng answered 2 years ago

Hi Sanjay,
 
To understand the value of Alphabet, you need to plot the dialy PE chart. From the chart, you need to find out what is the average trading range for Alphabet. You can download the share price from yahoo finance and input the earning per share to plot the chart in excel.

ashz answered 2 years ago

re Google – with the markets talking about anti-trust regulations, how will this impact Google if is forced to be broken up into parts? how should we take into account this when valuing google?

Victor Chng answered 2 years ago

Hi Ashz,
 
If the anti trust law is a concern for you then you should apply a higher margin of safety to your intrinsic value.